Japan's delegation to present paper on doubling FDI to PM Modi

NEW DELHI: A Japanese delegation led by Minister for Economy, Trade and Industry Yoichi Miyazawa and comprising top executives of companies such as Suzuki, Toyota, Honda, Toshiba, Hitachi Tsumitomo, Mitsui and Mitsubishi are set to meet Prime Minister Narendra Modi this week to present a paper on doubling that country's di rect investment in India.

This is the first such mission to seek an audience with Modi, after both nations made an announcement last September to double Japanese business enterprises as well as investment in India in five years, government sources told ET. The paper that the group of more than 20 Japanese business honchos is set to present will highlight their business plans in India, the sources said. Some of these business men had met the PM sepa rately over the past year.

As of January, 1,209 Japanese companies were regis tered in India, including 137 which were added to the list since 2013. Foreign direct in vestment from Japan was $1.224 billion during Janu ary-September 2014. Japanese FDI has mainly been in the automobile, electrical equipment, telecommunications, chemical and pharmaceutical sec tors.

Ever since he took over in last May, Modi has been working on improving India's part nership with overnment has Japan. The government has created a cell, called 'Japan Plus', which includes a Japanese official from Japan's Ministry for Economy , Trade and Industry and works under the aegis of the PMO to facilitate Japanese investments in India.

During Modi's trip to Japan last year, his Japanese counterpart, Shinzo Abe, had promised $33.8 billion of public and private investment and financing from Japan in areas such as transportation, smart cities, rejuvenation of rivers, manufacturing, clean energy, skill development, water security, food processing and agro industry, cold chain, and rural development. Japan has been extending loan and grant assistance to India since 1958 and is one of the largest donors to India.

This Japanese business mission that also includes a few banking honchos is significant as it comes ahead of Modi's China trip where too he is expected to pitch for higher investments from the neighbouring country.

A highlight of the business mission will be a dialogue involving Commerce Minister Nirmala Sitharaman and various Indian states where Japan has big investments.These states include Rajasthan, Haryana, Gujarat, Maharashtra and Andhra Pradesh. According to diplomatic sources, Japan is interested in setting up 10 industrial parks here.

Actually no. Modi is very very pro-Japan and Shinzo is also pro-Modi and hence pro-India. (both are friends) It's actually the other way around. If India becoms too pro Japan, it'll be uncomfortable for china.